Hillpointe Closes Workforce Housing Fund at $110M

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Hillpointe LLC has closed its workforce housing fund at $110 million, which is expected to bring eight communities to the southeastern U.S.

The fund, Hillpointe Workforce Housing Partnership II LP, was created to develop Class A apartments for workforce residents. Steven Campisi, co-founder & managing partner at Hillpointe, said in prepared remarks that the funds will be used to develop eight workforce housing projects in Hillpointe’s development pipeline. The projects represent approximately $320 million of total asset value and approximately 2,400 workforce housing units in the southeastern U.S., Campisi added in his prepared statement.

Jeff Goll, Hillpointe’s managing director & head of capital markets, said in prepared remarks that the fund’s latest investors include institutions, family offices and multifamily offices across the country. According to Hillpointe, the fund’s target was $100 million but achieved its hard cap of $110 million. The fund had no placement agent but Greenberg Traurig, P.A. served as legal counsel.

HIGH DEMAND, HIGH PERFORMANCE

Campisi also said in prepared remarks that there is significant unmet demand for newly built communities with rents between $1 and $1.20 per square foot. To capitalize on the undersupply of workforce housing, Hillpointe is looking to build to the demand of renters who make between 60 and 120 percent AMI.

According to Hillpointe, the workforce housing sector, alongside suburban locations, sunbelt states and secondary markets, performed well in 2020 as the COVID-19 pandemic accelerated the rise of these sectors. Hillpointe also noted that workforce housing in the southeastern U.S. has particularly overperformed compared to other real estate types. Last year, the firm also secured a $24 million refinancing for its 240-unit workforce housing community in Hinesville, Ga.